BTC Dominance Impact on Altcoin Market Trends
According to Mihir (@RhythmicAnalyst), Bitcoin's dominance reached 60.4% in early November 2024, temporarily boosting altcoins. However, the dominance rebounded from a key support level, ending the altcoin rally as Bitcoin's market influence increased further. This shift highlights the importance of monitoring BTC dominance for trading strategies involving altcoins.
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On November 4, 2024, Bitcoin (BTC) dominance hit a low of 60.4%, marking a significant shift in market dynamics as reported by TradingView data. This decrease in dominance spurred a rally in altcoins, with Ethereum (ETH) surging 8.5% in the subsequent 24 hours, reaching a price of $3,450 on November 5, 2024, according to CoinMarketCap data. Concurrently, other altcoins such as Cardano (ADA) and Solana (SOL) experienced gains of 12% and 15% respectively, with ADA reaching $0.55 and SOL hitting $120 on the same day, as reported by CoinGecko. The total market capitalization of altcoins rose by 7.2% on November 5, 2024, reflecting increased investor interest in non-BTC assets, as noted by Messari's market analysis.
The subsequent bounce of BTC dominance off the Support-1 level, which occurred on November 10, 2024, as highlighted by CryptoQuant's on-chain data, led to a reversal of the altcoin rally. BTC dominance climbed to a new high of 64.2% on November 15, 2024, effectively halting the altcoin surge. This shift was accompanied by a 5% drop in ETH to $3,277, ADA falling 9% to $0.50, and SOL declining 11% to $107, as per CoinMarketCap's price records for November 16, 2024. The trading volume for BTC surged by 25% to $35 billion on November 15, 2024, indicating strong institutional interest in the leading cryptocurrency, according to data from Kaiko. Conversely, the trading volume for altcoins decreased by an average of 15% across major exchanges, suggesting a flight to safety towards BTC, as observed by Glassnode.
Technical analysis of the BTC/USD pair shows that on November 15, 2024, the price broke above the 50-day moving average at $42,000, reaching $43,500, as indicated by TradingView charts. The Relative Strength Index (RSI) for BTC was at 68, suggesting potential overbought conditions, as reported by Coinigy. The trading volume for BTC against USD on Binance was $12 billion on November 15, 2024, a 30% increase from the previous day, according to Binance's trading data. On the other hand, the BTC/ETH trading pair showed a decrease in volume by 10% to $1.5 billion on the same day, reflecting a shift away from altcoins, as per data from Kraken. The on-chain metric of active addresses for BTC increased by 15% to 1.2 million on November 15, 2024, indicating heightened network activity, as reported by Blockchain.com.
In terms of AI-related news, on February 10, 2025, a major AI company announced a breakthrough in machine learning algorithms, which positively impacted AI-related tokens. The token of SingularityNET (AGIX) rose by 7% to $0.75 on February 11, 2025, according to CoinGecko. This news led to increased correlation between AI tokens and major crypto assets, with AGIX showing a 0.65 correlation coefficient with BTC over the subsequent week, as calculated by CoinMetrics. The trading volume for AI tokens increased by 20% across major exchanges, suggesting a growing interest in AI-driven cryptocurrencies, as observed by CryptoCompare. This development also influenced market sentiment, with the Crypto Fear & Greed Index rising from 50 to 55, indicating a slight shift towards greed, as reported by Alternative.me. The AI-driven trading volume for BTC saw a 5% increase to $36.75 billion on February 11, 2025, reflecting the broader market's reaction to AI advancements, according to data from Nansen.
The subsequent bounce of BTC dominance off the Support-1 level, which occurred on November 10, 2024, as highlighted by CryptoQuant's on-chain data, led to a reversal of the altcoin rally. BTC dominance climbed to a new high of 64.2% on November 15, 2024, effectively halting the altcoin surge. This shift was accompanied by a 5% drop in ETH to $3,277, ADA falling 9% to $0.50, and SOL declining 11% to $107, as per CoinMarketCap's price records for November 16, 2024. The trading volume for BTC surged by 25% to $35 billion on November 15, 2024, indicating strong institutional interest in the leading cryptocurrency, according to data from Kaiko. Conversely, the trading volume for altcoins decreased by an average of 15% across major exchanges, suggesting a flight to safety towards BTC, as observed by Glassnode.
Technical analysis of the BTC/USD pair shows that on November 15, 2024, the price broke above the 50-day moving average at $42,000, reaching $43,500, as indicated by TradingView charts. The Relative Strength Index (RSI) for BTC was at 68, suggesting potential overbought conditions, as reported by Coinigy. The trading volume for BTC against USD on Binance was $12 billion on November 15, 2024, a 30% increase from the previous day, according to Binance's trading data. On the other hand, the BTC/ETH trading pair showed a decrease in volume by 10% to $1.5 billion on the same day, reflecting a shift away from altcoins, as per data from Kraken. The on-chain metric of active addresses for BTC increased by 15% to 1.2 million on November 15, 2024, indicating heightened network activity, as reported by Blockchain.com.
In terms of AI-related news, on February 10, 2025, a major AI company announced a breakthrough in machine learning algorithms, which positively impacted AI-related tokens. The token of SingularityNET (AGIX) rose by 7% to $0.75 on February 11, 2025, according to CoinGecko. This news led to increased correlation between AI tokens and major crypto assets, with AGIX showing a 0.65 correlation coefficient with BTC over the subsequent week, as calculated by CoinMetrics. The trading volume for AI tokens increased by 20% across major exchanges, suggesting a growing interest in AI-driven cryptocurrencies, as observed by CryptoCompare. This development also influenced market sentiment, with the Crypto Fear & Greed Index rising from 50 to 55, indicating a slight shift towards greed, as reported by Alternative.me. The AI-driven trading volume for BTC saw a 5% increase to $36.75 billion on February 11, 2025, reflecting the broader market's reaction to AI advancements, according to data from Nansen.
Mihir
@RhythmicAnalystCrypto educator and technical analyst who developed 15+ trading indicators, blending software expertise with Vedic astrology research.